Thor Posts Gains in 3Q Revenue and Earnings

Thor Industries Inc. today (June 7) reported an increase in sales and earnings for its fiscal third quarter and nine months, ended April 30, while noting that discounting continued to cut into margins.

“While Thor’s earnings and EPS are somewhat better than last year in both the third quarter and the fiscal year to date, the elevated RV promotional environment has thwarted further margin expansion,” said Peter B. Orthwein, chairman and CEO for the Jackson Center, Ohio-based company. “We are working diligently to improve our margins.”

Sales during the third quarter were $926.46 million, up 9% from $852 million in the third quarter last year while net income rose 3% to $41.3 million from $40 million. Earnings per share (EPS) were 78 cents versus 72 cents a year ago.

Revenue for the nine months was $2.2 billion, up 11% from nearly $2 billion the previous year. Net income during the period rose 12% to $77.4 million from $69.4 million in the prior year period. Earnings per share for the nine months were $1.43 versus $1.26.

RV sales in the quarter totaled $807.2 million, up 9% from $742.8 million a year ago. Towable sales were up 9% to $680.5 million while motorized sales in the quarter increased 7% to $126.7 million. RV sales in the nine months gained 11% to $1.87 billion, including a 15% increase in towable sales of $1.6 billion. Motorized sales for the nine months edged down to $246 million from $274.6 million in the prior year period. Bus segment sales were up 9% in the quarter and 9% for the nine months.

“Thor has demonstrated solid top line revenue performance in the quarter and nine months ended April 30th, driven by improving RV and bus markets,” Orthwein said. “The RV market continues to show retail sales improvement through May and the bus industry is also on an upward trajectory from last year.”